After antitrust raids, ad group warns against pricing coordination

New Delhi: After high-profile antitrust raids in India, a group of major ad agencies has asked members, who include GroupM, Dentsu and Publicis, to avoid communicating with rivals over WhatsApp or share sensitive pricing data, a document shows.

The Competition Commission of India (CCI) shook the sector in March with dawn raids during an investigation of suspected collusion over publicity rates and discounts in the world's eighth biggest ad market with 2025 revenues of $18.5 billion.

The investigation has cast a shadow on India's fast-growing broadcast and streaming sector, which counts Reliance-Disney and Sony among top players, and could alter how advertising is priced and sold by global media buying agencies.

The March 18 surprise searches followed tip-offs under a leniency scheme by the CCI that reduces penalties for companies providing evidence, Reuters has reported, with Dentsu one of those applying.

Days later, the Advertising Agencies Association of India (AAAI) asked members to avoid discussions over pricing or other commercially sensitive information during its meetings where the group's legal adviser should be present, according to an advisory seen by Reuters that showed the increased concern over compliance.

"Members are requested not to discuss (through any mechanism, including emails, WhatsApp groups, documents, any informal, or formal meetings), any commercially sensitive information," said the advisory, drafted by the group's law firm in the case, Trilegal, and shared with all members.

Such information includes prices or pricing strategies, the March 26 document added, asking members to exit existing WhatsApp groups and cease communication with each other.

The advertising association counts Indian units of GroupM - owned by Britain's WPP - Japan's Dentsu and France's Publicis among members.

All their Indian offices, including AAAI's, were raided in March.

The CCI and media agencies, including AAAI, did not respond to Reuters queries. Law firm Trilegal said its policy was to not comment on ongoing cases.

The advisory added that any form of coordination or exchange of commercially sensitive information may raise concerns under India's competition laws and attract further scrutiny from the CCI.

Dentsu the whistleblower

The CCI does not make public details of any investigations until they conclude. They can take years.

The March raids also covered the office of the nation's top broadcasters' body in New Delhi, IBDF, which represents the likes of Reliance-Disney and Sony.

Last year, Dentsu submitted evidence to the CCI after it detected price collusion internally and filed a leniency plea with the CCI which allows a 100% penalty waiver for the first company providing evidence of wrongdoing, Reuters has reported.

Among Dentsu's submissions was a 2023 IBDF-AAAI "procedure" document related to how ad agencies must conduct business in India, a source with direct knowledge of the investigation said this week.

Reviewed by Reuters, the 10-page IBDF-AAAI document stated it wanted to eliminate "lower pricing as being the reason to award a pitch" and wanted to "discourage any misadventures by agencies" to win clients.

"The agency shall not unilaterally offer any discount on existing rates," said the 2023 document, which also required one agency to issue a "no objection" certificate if a client moves to another ad agency.

IBDF did not respond to Reuters queries, but the latest March 26 advisory appears to end the 2023 practice.

Agencies are "advised to not impose any restrictions (including requirements for a no-objection certificate or embargo) shared by any other trade associations," said the March 26 AAAI document.